COLONIAL STRATEGIC INCOME FUND
Class A, B and C
Supplement to the April 30, 1998,
Revised September 8, 1998 Prospectus
(Replacing Supplement dated October 28, 1998)
The Fund's Prospectus is amended as follows:
(1) Effective November 1, 1998, the Fund will offer a fourth class of shares,
Class J shares. Class J shares are sold exclusively in Japan to residents
and citizens of Japan only and offered through a separate Prospectus.
(2) The paragraph Borrowing of Money under the caption HOW THE FUND PURSUES
ITS OBJECTIVE AND CERTAIN RISK FACTORS is revised in
its entirety as follows:
Borrowing of Money. The Fund may borrow money from banks other affiliated funds
and other entities to the extent permitted by law for temporary or emergency
purposes up to 33 1/3% of its total assets.
(3) The caption YEAR 2000 is revised in its entirety as follows:
YEAR 2000
The Fund's Advisor, Distributor and Transfer Agent (Liberty Companies) are
actively managing Year 2000 readiness for the Fund. The Liberty Companies are
taking steps that they believe are reasonably designed to address the Year 2000
problem and are communicating with vendors who provide services, software and
systems to the Fund to provide that date-related information and data can be
properly processed and calculated on and after January 1, 2000. Many Fund
service providers and vendors, including the Liberty Companies, are in the
process of making Year 2000 modifications to their software and systems and
believe that such modifications will be completed on a timely basis prior to
January 1, 2000. The Fund will not pay the cost of these modifications. However,
no assurances can be given that all modifications required to ensure proper data
processing and calculation on and after January 1, 2000 will be timely made or
that services to the Fund will not be adversely affected.
(4) The Fund changed its process of accounting for dividend and capital gains.
Instead of using a daily record date, the Fund will use a single, monthly
record date. This change will generally not impact the amount of the
dividend or the timing of distributions paid to shareholders.
(5) Colonial Investors Service Center, Inc., the Fund's transfer agent, changed
its name to Liberty Funds Services, Inc. (LFSI). The new name does not
affect the services to the Fund.
(6) The last sentence in the second paragraph under the caption HOW THE FUND
VALUES ITS SHARES is revised in its entirety as follows:
In addition, if the values of foreign securities have been materially affected
by events occurring after the closing of a foreign market, the foreign
securities may be valued at their fair value.
(7) The last sentence under the caption HOW TO SELL SHARES is revised in its
entirety as follows:
To avoid delay in payment, investors are advised to purchase shares
unconditionally, such as by federal fund wire or other immediately available
funds.
(8) The following sentence is added to the paragraph Class A Shares under the
caption HOW TO EXCHANGE SHARES:
Exchanges of Class A shares are not subject to a contingent deferred sales
charge. However, in determining whether a contingent deferred sales charge is
applicable to redemptions, the schedule of the fund into which the original
investment was made should be used.
(9) Under the caption TELEPHONE TRANSACTIONS the first sentence is revised in
its entirety and a new second an third sentence are added as follows:
All shareholders and/or their financial advisors are automatically eligible to
exchange Fund shares and to redeem up to $100,000 of Fund shares by calling
1-800-422-3737 toll-free any business day between 9:00 a.m. Eastern time and the
time at which the Fund values its shares. Telephone redemptions are limited to a
total of $100,000 in a 30-day period. Redemptions that exceed $100,000 may be
done by placing a wire order trade through a broker or furnishing a signature
guaranteed request.
SI-36/231G-1198 October 30, 1998
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